CCA CCA Change Orders and Claims Management 2

Question 1

Which change order review step is most critical for detecting inflated material costs submitted by a contractor?

Accepted Answer

Comparing supplier invoices to the amounts billed in the change order

Answer

Comparing actual supplier invoices to change order billing amounts directly identifies whether the contractor marked up materials beyond contractually permitted rates.

Question 2

A contractor submits a delay claim asserting that owner-caused delays extended the project by 60 days. Which document is most essential for the auditor to evaluate this claim?

Accepted Answer

A contemporaneous, resource-loaded project schedule showing the as-planned vs. as-built critical path

Answer

A forensic schedule analysis comparing the as-planned to as-built critical path is the industry-standard method for quantifying owner-caused delays with the precision needed for audit evaluation.

Question 3

What is the purpose of a no-damage-for-delay clause in a construction contract, from an auditor's perspective?

Accepted Answer

It limits the contractor's monetary recovery for owner-caused delays to time extensions only

Answer

A no-damage-for-delay clause bars monetary delay damages even when the owner causes delays, limiting the contractor's remedy to a time extension, which auditors must recognize when evaluating delay claims.

Question 4

During a change order audit, the auditor finds that a contractor billed for 500 hours of equipment standby time during a 10-day owner-caused delay. What should the auditor verify first?

Accepted Answer

Whether the equipment was actually on site and idle, supported by daily equipment logs and field reports

Answer

Equipment standby claims require contemporaneous field evidence that the equipment was physically present and idle on site; without this, the hours are unsubstantiated.

Question 5

Which change order red flag most strongly suggests bid shopping by the general contractor after contract award?

Accepted Answer

Subcontractor substitutions on change order work at significantly lower prices than the original subcontractor bid

Answer

Post-award subcontractor substitutions at lower prices on change order work may indicate the GC is improperly bid shopping to capture the price difference as additional profit.

(CCA) Certified Construction Auditor Practice Test

(CCA) Certified Construction Auditor Practice Test

CCA CCA Change Orders and Claims Management 2